GST Updates & Deadlines of September 2020

1. GST DEADLINES

1.1. Deadlines | September 2020

♠ E Invoice mandatory for taxpayers whose Aggregate Turnover in previous financial year is more than Rs 500 crore. (Notification No. 60 & 61/2020 CT; Dated 30th July 2020) from 1 Oct 2020.

♠ Waiver of GSTR3B late Fees- Last date for availing conditional waiver of late fees for the period July 2017 to July 2020 is 30 Sep 2020. (Notification No.- 57 & 52/2020 CT; 30th June, 2020)

♠ Last date for availing ITC for FY 19-20 is the due date of Sep 2020 GSTR3B return.

♠ Last date for issuing credit note or making any amendments for invoices raised during the FY 19-20 is 30 Sep 2020.

♠ Compliance Calendar – September 2020

Due Date	Return/ Compliance	Remarks
07 Sep 20	TDS Payment- Income Tax	Due date for Payment of TDS for Aug 20
11 Sep 20	GSTR1 (Aug 20)	Return of Outward Supplies- Monthly Return
12 Sep 20	GSTR2B (Aug 20)	Auto Drafted ITC Statement available for download
15 Sep 20	Advance Tax- Income Tax	Second Instalment of Advance tax under Income Tax
20 Sep 20	GSTR3B (Aug 20)	Last Date for Payment of Tax and Return Taxpayers with Turnover More Than 5 Crore
22 Sep 20	GSTR3B (Aug 20)	Last Date for Payment of Tax and Return Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in Chhattisgarh, MP, Gujarat, Daman & Diu, Dadra & Nagar Haveli, Maharashtra, Karnataka, Goa, Lakshadweep, Kerala, Tamil Nadu, Puducherry, Andaman & Nicobar Islands, Telangana, Andhra Pradesh.
24 Sep 20	GSTR3B (Aug 20)	Last Date for Payment of Tax and Return Taxpayers with Turnover Less Than 5 Crore having Principal Place of Business in J&K, Laddakh, HP, Punjab, Chandigarh, Uttarakhand, Haryana, Delhi, Rajashthan, UP, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, WB, Jharkhand and Odhisha
30 Sep 20	GSTR 9/9C (FY 18-19)	GST Audit and Annual Return last date.
30 Sep 20	GSTR 9A	Annual Return for Composition Taxpayers

♠ GST Audit and Annual return (GSTR9 and GSTR9C) due date 30^th Sep 2020 for FY 18-19. For regular taxpayers whose Aggregate Turnover during the financial year is more than Rs 5 Crore.

Description	Aggregate Turnover	Form	Period	Compliance
GST Audit & Annual Return	More than 5 Cr.	GSTR 9/ 9C	FY 18-19	Compulsory
GST Annual Return	Between 2 Cr. To 5 Cr.	GSTR 9	FY 18-19	Compulsory
GST Annual Return	Less than 2 Cr.	GSTR 9	FY 18-19	Optional

1.2.  GSTR2A reconciliation from Feb to Sep 20 in GSTR3B of Sep 20

(Notification No.- 30/2020 –CT; Dated: 3 April 2020)

Rule 36(4) of CGST Rules 2017 has restricted Input Tax Credit to the maximum of 110% of ITC available in GSTR 2A. However, the said condition for the period Feb 20 to Sep 20 shall apply cumulatively i.e. total ITC availed in GSTR3B during Feb 20 to Sep 20 cannot exceed 110% of ITC available in GSTR2A. In Sep 20 return GSTR2A reconciliation shall be done for the period Feb 20 to Sep 20.

2. GST PORTAL UPDATES

2.1. Launch of GSTR2B Return from July 2020

(Press Release; Dated: 29 Aug 2020)

The GST Council, in its 39 meeting held on 14 March 2020, had recommended to adopt and implement the incremental approach of linking the present system of filing of GSTR-3B and GSTR-1 and other significant changes like enhancements in GSTR-2A and its linking to GSTR-3B. One such enhancement that the Council recommended was introduction of an auto-drafted input tax credit (ITC) statement which would aid in assisting / determining the input tax credit that is available for every taxpayer.

GSTR-2B is going to be such an auto-drafted ITC statement which will be generated for every registered person on the basis of the information furnished by his suppliers in their respective GSTR1, 5 (non-resident taxable person) and 6 (input service distributor). It is a static statement and will be made available for each month, on the 12 day of the succeeding month.It is expected that GSTR-2B will help in reduction in time taken for preparing return, minimising errors, assist reconciliation & simplify compliance relating to filing of returns.

Key features in GSTR-2B which would assist taxpayers in return filing are as under:

i. It contains information on import of goods from the ICEGATE system including inward supplies of goods received from Special Economic Zones Units / Developers. This is not available with the release of GSTR-2B for the month of July and will be made available shortly.

ii. A summary statement which shows all the ITC available and non-available under each section. The advisory given against each section clarifies the action to be taken by the taxpayers in their respective section of GSTR-3B;

iii. Document level details of all invoices, credit notes, debit notes etc. is also provided both for viewing and download;

* GSTR-2B for the month of July 2020 has been made available on the common portal on trial basis.

2.2. Details of import of Goods available in GSTR2A

(Press Release; Dated: 29 Aug 2020)

Two new tables have been inserted in GSTR-2A which displays details of import of goods from overseas supplier and inward supplies made from SEZ units/ SEZ developers. Taxpayers can now view their bill of entries data which is received by GSTN system from ICEGATE system. The updated data in GSTR-2A has been done on trial basis.

2.3.  System computed values of GSTR-1 Statement, made available in Form GSTR-3B

Tables of Form GSTR 3B will be Auto-Drafted in pdf statement: Following Tables of Form GSTR-3B will be auto drafted, on basis of values reported in GSTR-1 statement, for the said period:

3.1(a) – Outward taxable supplies (other than zero rated, nil rated and exempted)

3.1(b) – Outward taxable supplies (zero rated)

3.1(c) – Other outward supplies (Nil rated, exempted)

3.1(e) – Non-GST outward supplies

3.2 – Supplies made to un-registered persons

3.2 – Supplies made to composition taxable persons

3.2 – Supplies made to UIN holders

In this, following points may be noted:

• In case, any of the above values is negative as per GSTR-1 statement, those figures would be mentioned as Zero in the auto-drafted PDF and will not be carried forward to next period.
• Turnover & tax are computed after taking into account credit notes, debit notes, amendments and advances, if any.
• Only filed GSTR-1 statements are considered for auto-population of the values in Form GSTR-3B.

3. NOTIFICATIONS

3.1. Interest payable on Net Tax liability from 1 Sep 2020

(Notification No.- 63/2020-CT dt 25.08.2020)

• Much awaited amendment to Section 50 notified, levy of interest on delayed payment of GST on Cash Component only, made effective from 1 Sep 2020.
• It is worth remembering that, the 39th GST Council meeting declared that the interest on delayed GST payments would be applicable only on net cash tax liability after the deduction of the available input tax credits. The interest on a delayed GST payment will no longer be charged based on the gross tax liability. This change will be applicable retrospectively with effect from 1 July 2017, the date on which GST legislation came into force.
• However, ignoring the GST Council recommendation, Interest for delay in payment of GST on the Net Cash Tax Liability has been notified w.e.f. from 1st September 2020.

3.2.  GSTR 4 Due date extended to 31 Oct 2020

(Notification No.- 64/2020- CT; 31 Aug 2020)

Date of filling GSTR4 for Financial Year 2019-20 has been extended to 31 Oct 2020. Earlier due date of GSTR4 return was 31 Aug 2020. GSTR4 return is required to be filled annually by composition dealers.

3.3.Time limit for compliance under Sec 171 extended till 30 Nov 2020

(Notification No.- 65/2020- CT; Dated: 1 Sep 2020)

The CBIC has extended time limit for Completion or compliance under Section 171 (Anti Profiteering) falling during the period from 20 March 2020 to 29 Nov 2020 till 30 Nov 2020.

4. PRESS RELEASE

4.1.Interest on Delayed payment of GST

(Release ID: 1648751; Dated: 26 Aug 2020)

THE CBIC clarified that the Notification No. 63/2020-Central Tax dated 25th August 2020 relating to interest on delayed payment of GST has been issued prospectively due to certain technical limitations. However, it has assured that no recoveries shall be made for the past period as well by the Central and State tax administration in accordance with the decision taken in the 39th Meeting of GST Council. This will ensure full relief to the taxpayers as decided by the GST Council.

CBIC explanation came in response to an assortment of comments in the social media with respect to Notification dated 25th August 2020 regarding charging of interest on delayed payment of GST on net liability (the tax liability discharged in cash) w.e.f. 1st September 2020.

5. LEGAL UPDATES

5.1.  SEZ unit can claim refund of ITC of GST distributed by ISD unit

(Britannia Industries Limited Vs UoI)

Refund in case of supplies of goods or services to SEZ shall be filled by the supplier as per Second Proviso to Rule 89(1) of CGST Rules, 2017.

Gujarat HC held that SEZ unit can claim refund of ITC of GST distributed by ISD unit. It is held that as there is no specific supplier who can claim the refund, therefore, petitioner being SEZ unit can claim refund of ITC.

6. Virtual Hearing of Appeals under GST

(Instruction| Judicial Cell; Dated: 21 Aug 2020)

CBIC has now decided to make it mandatory for various authorities to conduct personal hearing in respect of any proceedings under the Customs Act 1962, Central Excise Act 1944 and Service Tax through video conferencing facility. This facility has also been extended to proceedings under the GST as well. Broad guidelines to conduct virtual hearing have also been provided to ensure ongoing work of appeals and adjudication are completed expeditiously.

• The submissions made by the appellant through video conference will be reduced in writing, which shall be known as ‘record of personal hearing’. A soft copy of such record of hearing will be sent to appellant within one day of hearing.

If the assesse wants to modify the contents of record of personal hearing, they can do so within 3 days of receipt of such e mail.

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Disclaimer: “This material is intended to provide general information on particular subject(s) and is not an exhaustive treatment of such subject(s) or a substitute to obtaining professional service or advice. It is strongly recommended to seek professional advice before implementation of any of the aspects covered in the presentation.”)

Author can be reached at ca.hsinghal@gmail.com